Automakers report mixed U.S. sales results as hybrids drive market

DETROIT — Second-quarter U.S. vehicle sales are turning into a tale of haves and have nots, as automakers that have hybrid models are outperforming those that don’t amid high gas prices and a decline in demand for all-electric vehicles.

Global hybrid leader Toyota Motor on Wednesday reported a 1.1% increase in its second-quarter sales, led by a roughly 20% increase in sales of electrified vehicles.

Hyundai Motor, up 4% during the last quarter, reported a 67% increase in hybrids during the first half of the year, while Honda Motor reported that record electrified sales helped it notch an 8.4% increase in overall sales during the second quarter. Kia, up about 3%, also reported a 152% increase in hybrid sales during the second quarter.

“Hybrids are definitely our growth engine right now,” Hyundai and Genesis North America CEO Randy Parker said Wednesday during a call. “Hybrids are really, really taking off right now as consumers, I think, are prioritizing fuel efficiency and lower operating costs due to high gas prices.”

Gas prices are up more than 20% from the same period last year, according to AAA.

Meanwhile, General Motors, which offers a broad EV lineup but only one hybrid, a low-volume Corvette, reported a 4.2% decline in second quarter sales.

The juxtaposition of hybrids between GM, the top-selling automaker in the U.S., and No. 2 Toyota caused Cox Automotive last week to note that the Japanese automaker is closing its gap in sales with the Detroit carmaker.

“At these rates, and what we’re seeing right now in the selling rates, GM may be looking over their shoulder here when we get to the year’s end, that Toyota could potentially overtake them as the top selling manufacturer here in the U.S. market,” Charlie Chesbrough, senior economist and senior director of industry insights at Cox Automotive, said during a media event.

Cox Automotive and J.D. Power expect second-quarter sales to be roughly level compared with a year earlier. Cox forecast industry sales to be off 0.5%, while JDP expected a 0.7% increase in vehicles sold.

Automotive data firm Motor Intelligence on Wednesday estimated U.S. industry sales for June were up 7.5% compared to a year ago, leading to a monthly adjusted selling pace of 16.67 million units, which was higher than many forecasters had expected.

As of last week, Cox Automotive expected U.S. auto sales to be down 2.9% to 15.8 million vehicles, including a 3.4% decline in retail sales. That included a 16.1 adjusted selling rate forecast for June.

Outliers in the second quarter include Chrysler parent Stellantis, which was up 5.9%, and Nissan Motor, up 9.6%. Both offer limited electrified models, including hybrids and/or EVs, but are in the midst of sales-focused turnaround plans.

“At a time when customers are focused on maximizing the value of every dollar they spend, our lineup is delivering with strong quality, capability and the right mix of products,” Tiago Castro, Nissan Americas senior vice president of sales and marketing, said Wednesday in a release.

Having the right mix of products is key for automakers. Right now, aside from hybrids the right mix increasingly means having affordable vehicles, as many Americans grapple with inflation, high gas prices and other issues have been pushed out of the new vehicle market.

Expectations for U.S. new vehicle sales this year are relatively flat to down, according to several forecasts from analysts and companies.

Ford Motor, which reports sales results Thursday, also is expected to be an outlier. Cox Automotive expects the company, which has been grappling with lost pickup truck production, to be down 11.5% during the second quarter.

Cox also expects Tesla, which does not report regional sales, to be off more than 20% during the second quarter, as EV demand last year began to spike ahead of expectations of the Trump administration ending up to $7,500 in incentives for consumers to purchase an EV.

GM said its EV sales during the second quarter were off 33% compared to last year.

Each of GM’s brands saw year-over-year sales declines during the second quarter, led by a 19.2% decline in Cadillac. Buick was down 7.5%, Chevrolet fell 3.9% and GMC reported a 0.3% decline.

Despite the declines, including its crucial Chevrolet Silverado pickup truck, a GM executive described the company’s business as “performing well,” included remaining disciplined regarding sales incentives and highly profitable full-size pickup trucks.

“Our business is performing well, and customer demand is resilient, especially for our trucks and SUVs. The depth, breadth and appeal of our vehicle portfolio allows us to lead the market in sales, while maintaining discipline on inventory, pricing and incentives to deliver strong margins,” GM North America President Duncan Aldred said in a release.

GM said that despite a 7.7% decline in its Silverado pickups for the quarter, including a 25.9% drop for its electric truck, the company still expects to have gained market share in the full-size truck segment during the period.

Its GMC Sierra pickup trucks did better, with a 5% increase in sales, including double-digit increases for its electric and light-duty 1500 models amid tough comparisons. GM recorded its best combined sales of Silverado and Sierra full-size pickup trucks in 20 years in 2025, leading to a sixth straight year of leading that highly profitable U.S. segment.